The trial balance of A, B, and D at December 31, 2021 after all adjustments have been made is as follows: Adjusted Balances Account Title Debit Credit Cash 83,000 Other Assets 80,000 Accounts Payable 140,000 A, Capital 7,000 B, Capital 7,000 C, Capital 9,000 163,000 163,000 On January 1, 2022 the partnership is liquidated. Other assets are sold for: $ 144,000 Gains and losses are liquidated in a ratio of: A 3 B 2 D 5 Required 6 Print out the "Part. Liqu." page (see tab below). Complete the schedule. Assume any partner deficiency (debit balance) is repaid with cash by the applicable partner. 7 Prepare the journal entries to record the liquidation.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Part C
| Part C (2021 and 2022) | |||||||
| The |
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| Adjusted Balances | |||||||
| Account Title | Debit | Credit | |||||
| Cash | 83,000 | ||||||
| Other Assets | 80,000 | ||||||
| Accounts Payable | 140,000 | ||||||
| A, Capital | 7,000 | ||||||
| B, Capital | 7,000 | ||||||
| C, Capital | 9,000 | ||||||
| 163,000 | 163,000 | ||||||
| On January 1, 2022 the |
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| Other assets are sold for: | $ 144,000 | ||||||
| Gains and losses are liquidated in a ratio of: | |||||||
| A | 3 | ||||||
| B | 2 | ||||||
| D | 5 | ||||||
| Required | |||||||
| 6 | Print out the "Part. Liqu." page (see tab below). Complete the schedule. Assume any partner deficiency (debit balance) is repaid with cash by the applicable partner. | ||||||
| 7 | Prepare the |
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